It’s time for pension reform

With the return of the state legislature, the race against the clock has started to decide on more than 500 bills over the next four weeks. Among them, the reform of the pension system has captured the most attention, and its resolution will define the success or failure of the legislative session.

Public pension funding is currently one of the biggest concerns for cities and counties in California. Because of the economic crisis, they are finding it increasingly difficult to meet those commitments. At the same time, there is a general environment that favors reform, as average taxpayers compare their own retirement benefits with those of public employees. This is especially true after the economic collapse that caused many 401(k) savings accounts to plummet.

This reform will be tough for the Democrats, since one of their political pillars, the unions, oppose major reform.

For example, they agree on eliminating the abuses that led to the astronomical pensions that have angered the public so much. However, they are against establishing changes in retirement guarantees through the legislature instead of at the bargaining table.

In addition to the fiscal climate, the pressure for reform is also being driven by an idea prevailing in the Brown administration: that reform is necessary for voters to believe that the governor is committed to resolving the deficit and to approve his tax increase initiative in November.

We think it is necessary to make changes that reflect the new post-Great Recession economic reality. This will be a test of the Democratic leadership and their allies in Sacramento.